With a deal for Maidenform, Hanes is hoping for a good fit.
Hanesbrands said on Wednesday that it had agreed to acquire Maidenform Brands for $23.50 a share, or about $575 million, adding an intimate apparel maker to its portfolio of clothing brands. The price represents a 30 percent premium to Maidenform’s average closing price over the last 30 days.
Shares of Maidenform rose modestly in premarket trading on Wednesday, while Hanes shares were up about 2 percent.
The all-cash deal has been approved by the boards of both companies, and is subject to approval by Maidenform shareholders and regulators, Hanes said. The deal is expected to close in the fourth quarter of this year.
“This business is a natural fit into our core business and meets all of our acquisition criteria,†Richard A. Noll, the chairman and chief executive of Hanes, said in a statement.
Hanes expects the deal to augment earnings per share in the first 12 months after closing, and the company projects the deal would add more than $500 million in incremental annual sales within three years.
Maidenform would join a stable of prominent brands at Hanes, including Playtex and Just My Size. Among the expected synergies, Maidenform’s average-figure bra line would complement Hanes’s full-figure bra business, Hanes said. Maidenform’s brands include Lilyette and Sweet Nothings.
“Maidenform and Hanes are two companies that share rich histories, world-class and complementary brands, and promising futures,†said Maurice S. Reznik, the chief executive of Maidenform. “This transaction is an important affirmation of the Maidenform brands, our prospects and the hard work and dedication of our team.â€
Guggenheim Securities and Davis Polk & Wardwell are advising Maidenform. Goldman Sachs and King & Spalding are advising Hanes.
